Has this quick rally caused us to be short term over bought? Daily Levels ES – 3/8/16

Here you will find the most recent trade levels released today in the Market Dimensions Advisory. This update is showcasing an MDA SnapShot levels with potential buy and sell zones for you to consider executing on the day. If you would like to further discuss these trades do not hesitate to contact me directly. If you are not getting these updates sent to your inbox each morning, please subscribe HERE. To see all MDA updates (morning & intra-day levels, trade recaps, educational material) visit my blog page HERE.

Published 3/8/16 8:12 am central:

Traders,

Stocks have been holding these upper 1990 to lower 2000, but looking like it may flip over from the last 2 sessions. (overnight high @ 2000.25 low @ 1980.75) With the oil market continuing to show strength and make new highs, I think that has been holding us up. If we see weakness in oil stocks are just waiting for that confirmation to sell off. Many people are still anticipating that the stock market is still due for a correction to the downside and that we could enter a bear market. If you are a bear you have to respect the strength we have seen the last couple weeks. With this quick of a move higher in oil and the stock, a correction would seem eminent but if the short sellers are weak and continue to keep getting stopped out we will just slowly grind higher. If you are a longer term swing trader and are comfortable having longer term risk on the table, we are trading at the 200 moving average on the daily chart. If you are a bear consider being short with stops above the 2075 and targets back at the 1900 level.

Looking at the Market Action Scanner, 3 of the 4 time frames (weekly,daily,240 min) are all still green and bullish above the top levels. We are kind of in a holding pattern waiting for new levels to appear longer term so we can look to see the ranges and attempt to play them. The Daily chart is showing yellow which is an indication of new levels being developed, which can also be viewed as a profit taking indicator. Meaning we could see new ranges below and above these current levels. Looking at the SP odometer, longer term we are still green bullish but the 60 min is beginning to close to that neutral level. We could be seeing a small correction coming in, however, longer term bulls are still in control so could be short lived and quick. On the 60 min levels bears need to break 1982 and close below that for a short term bearish signal to hold.

Looking at the 30 min chart, we have been breaking above the 1990 level, but not really able to get strong momentum, this could be due to pre-market trading. Also, crude as been moving between 38.40 -38.00 so we are kind of upticking and down ticking on that market movement. As you can see on navigator we had strong red in the overnight but are close back to the green level. Short term bears are in control on this 30 min chart and there is a lot of volume for us to get through up to 2000.00 prices. The levels have been in place for about 5 hours, so we will need to see if new levels appear on the open when more volume comes in. However, according to this snapshot you could play longs until we break 1984.00. That is when we could potentially see some short selling momentum take over. If this takes place we really need to get through the 1975 level and then the 1968 level. Those 2 levels especially the 1968 have held strong the previous times we’ve tested them. So potentially think of them as profit target zones. Below you will also see the economic calendar from dt Pro. We have no real market moving reports today

30 Min SnapShot Chart: (click for larger image)

Source: dt Pro

Market Action Scanner (click for larger image)

Source: Market Action Scanner

Economic Calendar – 3/2/16

Source: dt Pro

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Market Action Scanner

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This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.

Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.

You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.

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About Andrew Pawielski

Andrew Pawielski was hired by Daniels Trading as a Series 3 registered Commodity Futures Broker. Over the years at Daniels Trading, Andrew has worked with hundreds of traders and investors worldwide in many capacities of execution, trading, teaching, and consulting. Andrew's experience and expertise is not just in full service arrangements, but also on the industry's leading managed futures, automated trading systems, and online platforms that are available to both retail and institutional clients.

Being knowledgeable and trustworthy in all execution types of the Futures industry has allowed Andrew to offer unique and specific arrangements that apply directly into his client's risk tolerances and comfort levels. Realizing the risk involved with today's modern markets, Andrew embraces the philosophy, if you're not comfortable then I'm not comfortable.

Andrew graduated from Northwood University with a double major in Business Management and Management of Information Systems with minors in Economics, Finance and Accounting.

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After deciding to trade futures in September 2015, but not having experience, I decided to subscribe to MRCI to trade seasonal trades. I called MRCI after subscribing and asked for … [Read More]

This material is conveyed as a solicitation for entering into a derivatives transaction.

This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.

Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.

You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.